Think an employee is stealing from the company? Here is how to know for sure

1st Jul 2016
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Startups boast their flat hierarchy, everyone can approach everyone, ask any kind of questions and because the teams are generally small – everyone simply has access to everything. Right from financial accounts to documents. This is a great work culture to roll with, but only when all the people are trustworthy and loyal. If you think that you have that one rotten apple who intends on stealing from the company, here are a few signs that you need to look for – so that you can identify the rotten apple and place it outside the basket.

Detecting-fraud-in-a-compan

Image : Shutterstock

Strange behaviour

You can identify a perpetrator by observing his behavioural patterns. If you find a person’s behaviour odd, it could be a sign that something is wrong. If he is an employee at your company, he might try to maintain a low profile and avoid confrontation with higher authorities. It’s also possible that he might be disturbed and sometimes depressed.

Missing documents

If you are unable to find certain important records, don’t take it lightly. This could be a clear indicator of fraud. Your documents could be replaced or duplicated by the perpetrator. If you are suspicious of such documents, get them audited by a professional auditor, and make it known to your team that the situation is being looked into seriously.

Bogus refunds

If you find false refunds being issued to any customer from your end, put up an investigation to check if the customer really exists or whether he or she is really an employee shelling out money to their address or their friend’s address.

Online frauds 

If your company is an online network, secure it digitally. A lot of hackers exploit applications to avail services at cheap prices or even for free. In both cases, your company will be at a loss. Hire a team of professional cyber security experts to secure your website or application from digital attacks. Always keep an eye on the sales and revenue through your online portals. In case you spot unusual or suspicious activities, contact your technical support team as soon as possible. You can set up bug bounty programs to help detect bugs quickly.

Shortage of inventory

Keep a check on your inventory. Audit your inventory and study the statistics at the end of every day. If you find a deficiency in your inventory despite having built a good base, there is a possibility of theft from your storages.

Check authenticity of websites

If you outsource services or import products from other places, always verify the authenticity of the websites from which you purchase them. Fake websites could just take your payment, provide a fake shipment ID and escape with your money. This is why it is crucial to check reviews before purchasing anything in bulk online.

Business trips

If you send your employees on business trips, always make sure they do what they are sent for and not just enjoy their vacation at the company’s expense. For this reason, it is imperative to ask them for a report after every business trip.

If you are starting a business, it is crucial to monitor and detect fraud that can happen within your organisation. Hire a team of specialists who can help you with this work. Your company’s future depends on this.

(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)

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